Peak Supply

As a result of the ‘Besluit leveringszekerheid Gaswet’ from 13 April 2004, GTS has to hold sufficient resources for Peak Supply to suppliers of household customers (category G1A and G2A). Peak Supply applies in case of very cold circumstances, when there is an effective daily temperature lower than -9 ºC in De Bilt. In this case GTS is responsible for supplying the gas to these suppliers.

For the service of Peak Supply, GTS calculates the required capacity and volume each year. The required amounts are calculated based on historical temperature ranges and consumption in the previous winters on the relevant network points. The transport costs (entry and exit) that GTS reserves for Peak Supply during the winter months December, January and February (the period that Peak Supply might occur), will be invoiced to the suppliers of household customers (in these winter months) in proportion to their market share in the household customers segment. The peak production tariff will be invoiced to the suppliers each month of the year, also in proportion to their market share.

Actual Peak Supply

Actual Peak Supply is the case when the effective daily temperature is below -9 ºC. In this situation, the peak treshold (=winter hourly fraction times the standard year usage) that GTS calculates each month per shipper will be exceeded. When the peak treshold is exceeded, the excess will be allocated back to the shipper via an entry allocation on the Virtual Point Peak Supply. The excess volume that is allocated on this virtual point peak supply will be invoiced to the concerned suppliers in the next month.

The full text of the regulation (only available in Dutch) and an example calculation sheet can be found below.

From 1 January 2017 onwards GTS is the owner of the LNG peakshaver installation that is located on Maasvlakte, Rotterdam (the Peakshaver). Therefore, GTS can purchase a smaller share of the total capacity required for peak supply. The cost relating to the Peakshaver will be input for the determination of the peak production tariff, together with the purchased capacity.

The cost relating to the Peakshaver are calculated based on the method and parameters used for the tariff regulated tasks of GTS, as described in the method decision. The cost amount to 17.8 mln. Euro in total for the year 20178, as shown in the table below.

Cost peak production Peakshaver 2017**

In € mln.

Capital expenditures

3.9

Asset base

97.8

WACC

4.0%

Depreciation cost

4.3

Operational expenditures

6.3

Energy cost

3.2

Total cost 2017

17.

Together with the other tariff components, such as the capacity purchased through a tender and the cost related to entry transport capacity, this results in a total cost of 40.8 mln. Euro, a peak production tariff of 0.437 €/kWh/h/y and an entry transport tariff of 1.418 €/kWh/h/y for 2017. The exit transport tariff follows from the tariff decision.*The cost are based on an estimation, when the tariff was determined the final method decision regarding the year 2017 was not published yet. Deviations will be corrected through settlement.

*The cost are based on an estimation, when the tariff was determined the final method decision regarding the year 2017 was not published yet. Deviations will be corrected through settlement.
** The asset base and deprecation cost are based on the reference year 2015. The operational cost, energy cost (ENF) and the budget for regular expansion investments (RUI) are based on the reference period 2013-2015. The ENF-cost will be partly settled. The RUI budget is zero Euro, since there were no regular expansion investments during the reference period.